MICROECONOMICS CH : 8 CONCEPTS OF COST — Economics STD 11 Commerce — Question

A consumer buys a certain quantity of a good at a price of ₹10 per unit. When price falls to ₹8 per unit, she buys 40 per cent more quantity. Calculate price elasticity of demand.

What should the firm's profit, when average variable cost is ₹ 20 per unit, average fixed cost is ₹ 10 per unit, price of the output is ₹ 25 per unit and only 8 units of the output are produced?

Measure the height of your classmates. Ask them the height of their benchmate. Calculate the correlation coefficient of these two variables. Interpret the result.

Differentiate between graphs and diagrams.

Locate median of the following distribution:

Variable (X)	10	11	12	13	14	15	16
Frequency (f)	8	15	25	20	12	10	5

Differentiate between frequency polygon and frequency curve.

A consumer buys 80 units of a good at a price of ₹5 per unit. Suppose price elasticity of demand is (-) 2. At what price will he buy 64 units?

Calculate coefficient of correlation of the following data by the Product Moment Method:

X	8	6	4	3	4
Y	9	7	4	4	6

The price paid and quantities purchased by a household in base and current years are given below. Calculate the additional dearness allowance to be given to the household so as to fully compensate it for the price rise, using both the Laspeyre's and Paasche's index number.

Commodity	Base Year		Current Year
	Price (₹)	Quntity	Price (₹)	Quntity
A	30	10	40	8
B	12	20	15	18